Technical Trade #4 – Intel (INTC)

Intel (INTC) entered a bear market in September 2000, when it was trading for more than $75 per
share, and bottomed out at less than $17 in early 2006. From July 2006 to December 2007, it recovered to $28-plus before succumbing to selling, which
eventually drove it to $12.

On March 13, with the stock at about $13, I said, "INTC
appears to have formed a solid base at $12, but in order to break from the base it must close above the downtrend and yesterday’s [March 12] high
of $14.60. If it breaks out, the initial target is $18, but the trend will have changed to intermediate up, and that could attract more long-term
buying."

On June 10, at $16.45, I said, "Intel has
not only driven above $14.60, but it also established a base above its 200-day moving average, flashed a CBR buy signal, and completed a gold cross — all
signs of a long-term change in trend. Our trading target is revised upward to $22."

The enormous breakout gap at $16.89 to $17.72 could be filled on a pullback, but the internal strength is very high, so I’m revising my long-term
target to $24 to $26.

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